How Much Can I Put Into an HSA This Year? - All You Need to Know!

If you're considering opening a Health Savings Account (HSA), you may be wondering how much you can contribute to it this year. An HSA is a tax-advantaged account that allows individuals to save money for qualified medical expenses. Let's delve into the details to help you better understand how much you can contribute to an HSA.

For the year 2021, the maximum contribution limits for an HSA are as follows:

• Individual coverage: $3,600
• Family coverage: $7,200

It's important to note that individuals aged 55 and older are eligible for an additional catch-up contribution of $1,000 per year. This means that if you meet the age requirement, you can contribute up to $4,600 for individual coverage or $8,200 for family coverage.

Contributions to an HSA are tax-deductible, meaning you can reduce your taxable income by the amount you contribute. Additionally, funds in an HSA can be invested, allowing your savings to grow over time.

Keep in mind that the contribution limits for HSAs are subject to change from year to year, so it's essential to stay updated on the current limits. By maximizing your contributions to an HSA, you can take advantage of its tax benefits and secure your financial future.

Are you thinking about contributing to a Health Savings Account (HSA) this year? Understanding the contribution limits is crucial. For 2021, the maximum amounts you can deposit are set at $3,600 for individuals and $7,200 for families. As a bonus, if you're 55 or older, you can contribute an extra $1,000, bringing your totals to $4,600 and $8,200 respectively.